25th Apr 2019 11:58
LONDON (Alliance News) - Mining royalty firm Anglo Pacific Group PLC on Thursday said it is confident its main investment can significantly increase production going ahead.
Anglo Pacific's core investment is the Kestrel coal mine in Australia, with royalties from the mine in the three months to March rising 12% quarter-on-quarter to GBP11.8 million. The figure is over double year-on-year.
Overall, Anglo Pacific's royalty income climbed 2% to GBP14.3 million quarter-on-quarter, with total portfolio contribution up 7% to GBP17.5 million.
Sales volumes at Kestrel mine rose 20% during the quarter, Anglo Pacific said, showing targets set by the operators can be achieved.
Anglo Pacific's other investments are the Maracas Menchen vanadium mine in Brazil, where royalty income fell 52% to GBP1.1 million on the quarter before due to a planned shutdown.
At the Narrabri coal mine, also in Australia, royalties rose 17% to GBP1.4 million after a 33% rise in volumes.
Anglo Pacific did not make any new investments during the quarter, but is on the look out for acquisitions with a "significant war chest" up its sleeve.
Chief Executive Julian Treger commented: "Despite a background of economic uncertainty, our portfolio continues to deliver significant growth."
"With an encouraging start to the year from Kestrel, especially given its ambitions, we remain confident of delivering organic growth during 2019 whilst seeking to make additional quality investments."
Shares were 1.3% lower on Thursday at a price of 204.40 pence each.
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